Question
Computing Depreciation Under Alternative Methods Equipment costing $132,000 is expected to have a residual value of $12,000 at the end of its five-year useful life.
Computing Depreciation Under Alternative Methods
Equipment costing $132,000 is expected to have a residual value of $12,000 at the end of its five-year useful life. The equipment is metered so that the number of units processed is counted. The equipment is designed to process 1,010,000 units in its lifetime. In 2016 and 2017 the equipment processed 185,000 units and 145,000 units respectively. Calculate the depreciation expense for 2016 and 2017 using each of the following methods: a. Straight-line (Round to nearest dollar)
| 2016 | Answer 24,000 |
| 2017 | Answer 24,000 |
b. Double-declining-balance (Round to nearest dollar)
| 2016 | Answer ? |
| 2017 | Answer ? |
c. Units of production (Round to nearest dollar)
| 2016 | Answer ? |
| 2017 | Answer ? |
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